Almost Half of Small Businesses Set to Grow in 2015
68% of small and mid-sized businesses are confident in their ability to raise finance but majority are unaware of full range of funding routes
Research from the government’s British Business Bank has revealed 46% of small firms are predicting growth in 2015.
The report, which is the first in a series of annual reports, titled the Small Business Finance Markets, surveyed a 1,000 small firms. However, despite positive expansion plans, the majority of businesses were unaware of the finance options available to help them manage this growth.
68% were confident in their ability to get funding; yet only 65% have heard of alternative finance options such as crowdfunding and peer-to-peer lending and an additional 33% were unaware of government and local authority grants.
The most recognised forms of finance were credit cards at 95% and lease or hire purchase at 85%.
The British Business Bank survey also highlighted what small and mid-sized firms were looking to raise finance for, with purchasing fixed assets (43%) and to support cashflow (33%) cited as the most popular reasons.
Minister of the Department for Business, Innovation and Skills, Matthew Hancock, commented on the report:
“This British Business Bank research shows small firms want to grow, and access to finance is slowly getting better.
“But there is still much more to do. I won’t rest until Britain is the best place in the world to start and grow a business, and the extra support for the British Business Bank announced at Autumn Statement will help us in that mission.”
For more information on funding options for your small business, take a look at Startups.co.uk’s raising finance section here.